Duke Energy Corporation (holding Company) · NYSE:DUK
Duke Energy Corporation (holding Company) — Q1 2005 Earnings Presentation
19 slides from Duke Energy Corporation (holding Company)'s earnings presentation, May 4, 2005
Slide 1: First Quarter 2005 Earnings Review
First Quarter 2005 Earnings Review May 4, 2005 Paul Anderson Chairman and Chief Executive Officer Fred Fowler President and Chief Operating Officer David Hauser Group Vice President and Chief Financial Officer
Slide 2: Safe Harbor Statement
Safe Harbor Statement Under the Private Securities Litigation Act of 1995 This document contains forward looking information which is subject to risks and uncertainties that could cause actual results to be different than those contemplated, including, but not limited to, changes in state, federal o
Slide 3: Highlights for First Quarter 2005
Highlights for First Quarter 2005 1Q05 1Q04 Reported Basic EPS $ 0.91 $ 0.34 Special Items (0.47) -- EPS excluding special items $ 0.44 $ 0.34 ■ Regulated businesses delivered solid earnings and strong cash flow ■ DENA realized an ongoing segment EBIT loss of $56 million; benefited from higher energ
Slide 4: Special Items for First Quarter 2005
Special Items for First Quarter 2005 Franchised Natural Gas Field Crescent Total Segment Electric Transmission Services DENA International Resources Other and (Cont Ops) (Cont Ops) Other EBIT Reported Segment EBIT $ 336 $ 407 $ 921 $ (35) $ 68 $ 52 $ (169) $ 1,580 Special Items: Gains on asset sales
Slide 5: Franchised Electric
Franchised Electric ■ First Quarter 2005 Segment EBIT ● Lower earnings due to warmer weather, higher ($ millions) operating and maintenance expenses related to planned plant maintenance and outages Quarter 1Q05 1Q04 ● Lower bulk power sales, net of profit sharing which began in 2Q04 Reported Segment
Slide 6: Natural Gas Transmission
Natural Gas Transmission ■ First Quarter 2005 Segment EBIT ● Earnings benefited from expansion ($ millions) projects completed last year and favorable Canadian currency Quarter 1Q05 1Q04 translation Reported Segment EBIT $ 407 $ 398 ● Partially offsetting these increases were lower gas demand and th
Slide 7: Field Services
Field Services ■ First Quarter 2005 Segment EBIT from continuing operations ● Earnings benefited from higher commodity prices ($ millions) partially offset by higher operating costs Quarter 1Q05 1Q04 ■ Special Items: Asset Sales Reported ● Sale of TEPPCO GP resulted in a pre-tax gain of Segment EBIT
Slide 8: Duke Energy North America
Duke Energy North America ■ First Quarter 2005 Segment EBIT ($ millions) ● Improved results were driven by higher energy generation margins and Quarter 1Q05 1Q04 lower operating expenses Reported Segment EBIT $ (35) $ (557) ■ Prior year’s first quarter included a Special Items (21) 359 $87 million m
Slide 9: International Energy
International Energy ■ First Quarter 2005 Segment EBIT from continuing operations ($ millions) ● Earnings benefited from strong operations in Brazil, Guatemala Quarter 1Q05 1Q04 and Peru Reported Segment EBIT $ 68 $ 29 ● National Methanol also reported Special Items -- 13 higher earnings as a result
Slide 10: Crescent Resources
Crescent Resources ■ First Quarter 2005 Segment EBIT ($ millions) ● Lower commercial sales were partially offset by Quarter 1Q05 1Q04 increased sales of Reported residential lots and land Segment EBIT $ 52 $ 60 ■ Ongoing Segment EBIT is expected to exceed $150 million in 2005 10
Slide 11: Other EBIT
Other EBIT ■ Special Items for First Quarter 2005 Other EBIT ($ millions) ● A $28 million charge related to a mutual insurance liability Quarter 1Q05 1Q04 adjustment Reported EBIT $ (169) $ (5) Special Items 82 (14) ● A $54 million charge related to the change in mark-to-market Ongoing EBIT $ (87) $
Slide 12: Other Items
Other Items ■ Interest expense was $63 million lower than last year due to the debt reductions over the last year ■ Effective tax rate was approximately 34% ■ Cash and cash equivalents and short-term investments totaled approximately $2.07 billion at the end of first quarter 2005 ■ Duke Energy annou
Slide 13: Operations Review
Operations Review ■ Franchised Electric ● Economic development efforts are generating new business ● Capital expenditures expected to increase by about $100 million this year ● Evaluating regulatory options as we approach the end of our rate freeze in 2007 ■ Natural Gas Transmission ● Various open s
Slide 14: Duke Energy 2005 Charter
Duke Energy We are Duke Energy, a leading energy company located in the Americas with an 2005 Charter affiliate real estate operation Our purpose is to create superior value for our customers, employees, communities and investors through the production, conversion, delivery and sale of energy and en
Slide 15: Non-GAAP Reconciliation Schedules
Duke Energy Corporation Non-GAAP Reconciliation Schedules First Quarter 2005 Earnings Release 2005 and Beyond Ongoing Segment EBIT and Related Growth Percentages The Company’s slides and prepared remarks for the First Quarter 2005 Earnings Review include a discussion of forecasted ongoing EBIT for 2
Slide 16: Reconciliation of Ongoing EPS Change to Reported EPS Change
DUKE ENERGY CORPORATION REG G RECONCILIATION OF ONGOING EPS CHANGE TO REPORTED EPS CHANGE MARCH 31, 2005 Duke Energy Duke Energy Reported Earnings Ongoing Earnings Per Share, Basic Per Share, Basic Q1 2005 $ 0.91 $ 0.44 Q1 2004 0.34 0.34 Increase $ 0.57 $ 0.10 % Change 168% 29% (nearly 30% increase)
Slide 17: Reconciliation of Ongoing EBIT to Reported EBIT
DUKE ENERGY CORPORATION REG G RECONCILIATION OF ONGOING EBIT TO REPORTED EBIT MARCH 31, 2005 International Energy (Amounts in millions) International Energy International Energy International Energy Reported EBIT Special Items Ongoing EBIT from Continuing Ops from Continuing Ops from Continuing Ops
Slide 18: Ongoing to Reported Earnings Reconciliation March 2005
DUKE ENERGY CORPORATION ONGOING TO REPORTED EARNINGS RECONCILIATION March 2005 Year-to-date (Dollars in Millions) Special Items (Note 1) MTM change on Mutual Field Services Gain on sale Gains on sales de-designated Ongoing insurance hedge de- Reported of Grays of equity Field Services Total Earnings
Slide 19: Ongoing to Reported Earnings Reconciliation March 2004
DUKE ENERGY ONGOING TO REPORTED EARNINGS RECONCILIATION March 2004 Year-to-Date (Dollars in Millions) Special Items (Note 1) Gains Loss on (losses) on Gain on sale of Ongoing sale of Cantarell Reported sales of Asia Pacific Total Earnings Southeast Charge Earnings other assets assets assets, net SEG